This paper examines the systemic and social implications of the recent liquidation and merger of insolvent banks in Iran, focusing on the case of Ayandeh Bank (formerly TAT Bank, merged into Ayandeh, and now absorbed into Bank Melli). We assess whether this resolution mechanism yields positive outcomes in terms of financial stability, inflation control, depositor protection, and public trust. Our analysis argues that while the merger offers significant benefits, its success depends critically on structural reforms and improved governance within the banking sector.